TSI
Asking prices up across the UK, latest index shows
Asking prices in the UK have increased over the last month despite political uncertainty due to the general election, according to the latest index to be published. Average prices rose in all English regions, Scotland and Wales, reflecting an increasing and widespread confidence in the property market, says the latest index report from Home.co.uk. Confidence has increased even in lacklustre northern regions with prices in the North East and the North West both up by 0.6% since April, the data also shows. The fact that the new government looks set to continue Help to Buy and mortgage guarantee schemes will ensure further vigour in the vital first time buyer market. Moreover, the Right to Buy scheme and more home building will help ease supply problems over the next five years, the report points out. Time on market data shows that all regional markets have gained momentum over the last 12 months, with the exception of Greater London where the typical property is currently spending 14 days longer on the market than a year ago. Prices rise by 0.8% overall in England and Wales during the last month but the average annual home price appreciation for England and Wales moves down to 5.8%. The supply of property for sale is up by 8% compared to a year ago across the UK. The data also shows that the East of England becomes the most improved market over the last 12 months, with the average time on market falling by 15% to 125 days. ‘2015 is already looking like a more sensible and sustainable year for the UK property market. Confidence is growing in the northern regions and the London market has managed to exit a period of frenzied growth without a major catastrophe,’ said Doug Shephard Director at Home.co.uk. ‘Now we have the election out of the way, much uncertainty in the market has evaporated. Moreover, property prices are rising at a far more sustainable rate than we witnessed last year,’ he added. He also pointed out that the buy to let market looks set to continue to grow without the threat of rent controls as many look to property as a source of retirement income. Of course, this sector competes in the same space as first time buyers, and they are benefitting from government support and guarantees. And this is exactly the kind of grassroots stimulus that the market needs,’ said Shephard. He predicts a more ‘normal’ market over the course of 2015 and 2016 with prices rising steadily, mortgages available to those who can afford to pay them off and property taking a reasonable time to sell. The HAPI is based on asking price data which means the index can provide insights into price movements around 5 months ahead of mortgage completion and actual sales data. Properties above £1 million and below £20, 000 are excluded from the calculations. Continue reading
Bath tops list of most desirable urban location for buyers outside of London
Town and city living is becoming more popular in the England with Bath, Exeter and Bournemouth named as the top locations for urban living. Bath is popular with buyers because of its sophistication and easy access to beautiful countryside, Exeter for its location close to the moors and coastline and Bournemouth for its beach and contemporary architecture. Next on the list, compiled by agency Stacks Property Search, is Cheltenham, Truro, Milton Keynes, Oxford, Marlowe, Wells, Brighton and Winchester. ‘Urban property is becoming more and more sought after, and towns and cities that can offer sophistication, culture, great shopping, schooling and facilities, yet remain relatively small and contained with a clear personality are becoming increasingly popular,’ said James Greenwood of Stacks Property Search. Cheltenham is signalled out for its shopping and desirable suburbs, Truro for being just 30 minutes from some great surfing beaches, Milton Keynes for its lovely old houses within walking distance of the centre, Oxford for its university and culture, Marlowe for being a market town on the River Thames, Wells for being a safe city with a music culture, Brighton as a buzzing and bohemian place to live and Winchester for its quiet riverside walks but just an hour by train from London. ‘What makes these towns and cities so attractive is that they're small enough to be friendly with low crime figures, yet large enough to offer everything that residents want. They're like a hybrid between a market town and London. They don't have sprawling suburbs, so everywhere is fairly accessible on foot and they're surrounded by attractive countryside or seaside,’ explained Greenwood. ‘Urban life on this scale is attractive to numerous types of buyers, including families with older children who don't want to be hidden away in the middle of the country, retirees who want entertainment and company on their doorstep and the younger generation, many of whom find that large city living is too impersonal,’ he added. According to Nick Wooldridge of Stacks Property Search towns within commuting distance of London can be the first stop for city leavers who think that the culture shock of London to country is too severe. But many who arrive in Marlowe, for example, never move on as they enjoy the lifestyle so much. ‘Buyers are looking for a mini-London, and these towns all meet that brief. There are bucket loads of culture, fantastic shopping, a really buzzing atmosphere, restaurants and bars at all levels of the spectrum, good state and private schools, but everything's virtually on the doorstep,’ said colleague Jo Aldridge. While, according to Nicola Oddy it is the location of many of these towns that makes them so special. ‘Truro is an amazing city offering everything an urbanite could possibly want; but being equidistant between north and south Cornish coasts, there are 20 places within half an hour to keep a yacht, go surfing, or picnic on the beach. Bournemouth has seven miles of blue… Continue reading
As US home price growth continues to soften, expert says market is not back to normal
Home price growth across the US has softened for six months in a row with experts warning that the overall health and recovery of the residential real estate market is far from guaranteed. National home prices in April were up 5.1% year on year but while the quarterly rate of growth continued its path to normalisation coming in at 0.5%, according to the latest data from real estate firm Clear Capital. Most of the regions sustained price growth through the winter, but the Midwest is already seeing negative quarterly declines of 0.10% Midwest and the region remains volatile. The report points out that for nearly seven years, it has struggled to get on equal footing with the nation. Within the top performing markets for April, eight are Western markets. While the West’s market by market performance may exceed the other regions, gains have been softening since the beginning of 2014 and this is leading to softening gains at the national level, the firm says. Three Florida markets that rank among the top performers boast high levels of distressed and short sales. All three markets have distressed saturation rates that are at least 10% higher than the national level, at 16.5%, suggesting growth is dependent on a higher propensity of distressed inventory in this area. The report also points out that the stigma once associated with REOs has turned around and today, REOs and short sales signal opportunity to investors and traditional home buyers alike, and an indication that market level gains could be ahead. ‘While spring brings renewed confidence and demand, the numbers through April are mixed. Sales may be up, but subsiding gains imply the recovery is at a critical inflection point,’ said Alex Villacorta, vice president of research and analytics at Clear Capital. ‘As the market normalises, which is a good thing for housing overall, small losses could have greater impact, forcing a standstill or even worse, a return to negative territory in certain areas across the country,’ he explained. ‘Confidence is down in April, suggesting consumers aren’t quite convinced that the economy, much less housing, is as rosy as some early spring metrics suggest. Yet, we continue to see blooms of opportunity as distressed properties continue to provide fertile ground for investors of all sizes to take advantage of a red hot rental market. As we saw back in early 2013, this type of inventory can be the catalyst that revives confidence and re-engagement,’ he added. ‘The early spring numbers are encouraging but rest assured, the overall market is far from being back to normal. There is reason to be hopeful, but arm yourself with accurate data and remember to read headline numbers with the right perspective,’ he concluded. Continue reading
